Supreme Court to hear on March 24 plea against sale of electoral bonds

Chief Justice of India Sharad A. Bobde agreed with advocate Prashant Bhushan on Thursday to urgently hear a plea by NGO Association for Democratic Reforms to keep the sale of a brand new set of electoral bonds on April 1, earlier than Assembly elections in essential States akin to West Bengal and Tamil Nadu.

Responding to an pressing mentioning made by Mr. Bhushan by way of video conferencing, Chief Justice Bobde mentioned the matter would require an in depth listening to and posted the case for March 24.

Mr. Bhushan mentioned the Reserve Bank of India (RBI) and the Election Commission had each mentioned the sale of electoral bonds had develop into an avenue for shell companies and entities to park illicit cash and even proceeds of bribes with political events.

“Every time there is an election, the sale is opened. Every time this happens, we have moved the Supreme Court to stay it,” Mr. Bhushan submitted.

“But hasn’t stay been refused earlier?” Chief Justice Bobde requested.

“Not so, but parties had been asked to submit records in sealed cover… But a proper stay has to be considered. There are two documents from the RBI and the Election Commission that say the electoral bonds scheme is detrimental to democracy,” Mr. Bhushan replied.

Comment | Ensuring trust in the electoral process

Solicitor General Tushar Mehta knowledgeable the Chief Justice that Attorney General K.K. Venugopal could be showing within the case.

“His submissions in the Maratha quota case will start today [March 18] and he may finish it by Wednesday [March 24],” Mr. Mehta mentioned.

“Surely, he will find time in a matter like this!” Chief Justice Bobde retorted.

NGO’s arguments

The NGO, additionally represented by advocate Neha Rathi, has voiced severe apprehensions that the sale of electoral bonds earlier than elections in poll-bound States would “further increase illegal and illicit funding of political parties through shell companies”.

Its utility reminded the courtroom that each the central financial institution and the ballot panel had objected to the electoral bond scheme.

“Data obtained through RTI has shown that illegal sale windows have been opened in the past to benefit certain political parties… There is a serious apprehension that any further sale of electoral bonds before the upcoming State elections in West Bengal, Tamil Nadu, Kerala and Assam would further increase illegal and illicit funding of political parties through shell companies,” the NGO submitted.

It mentioned the scheme had “opened doors to unlimited political donations, even from foreign companies, thereby legitimising electoral corruption at a huge scale, while at the same time ensuring complete non-transparency in political funding”.

Govt.’s view

The authorities notified the scheme on January 2, 2018. It defended the scheme in courtroom, saying it allowed anonymity to political donors to shield them from “political victimisation”.

The Ministry of Finance’s affidavit within the high courtroom had dismissed the Election Commission’s model that the invisibility afforded to benefactors was a “retrogade step” and would wreck transparency in political funding.

The authorities affidavit had mentioned the shroud of secrecy was a product of “well thought-out policy considerations”.

It mentioned the sooner system of money donations had raised a “concern among the donors that, with their identity revealed, there would be competitive pressure from different political parties receiving donation”.